Mumbai, Feb 6 : The stock market opened on a cautious note Thursday, trading largely flat as investors awaited the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, scheduled for Friday.
By 9:36 a.m., the Sensex had slipped by 106.39 points, or 0.14%, to 78,164.89, while the Nifty was down 34 points, or 0.15%, trading at 23,662.10.
According to IANS , Market analysts highlighted that after an optimistic opening, Nifty may find support at 23,600, followed by 23,500 and 23,400. “On the upside, immediate resistance could be seen at 23,800, with further hurdles at 23,900 and 24,000,” said Hardik Matalia, Derivative Analyst at Choice Broking.
Gains in Infosys, Bajaj Finance, and Tata Consultancy Services helped lift the Nifty 50 index, but losses in Mahindra & Mahindra, ITC, Bharti Airtel, and HDFC Bank offset those gains.
On the NSE, most sectors showed positive movement, although Nifty Auto and Nifty FMCG were among the laggards.
Swiggy, the online food delivery platform, saw its stock decline in early trade following disappointing Q3 results, adding further pressure to the market.
Investors are betting on the likelihood of a 25-basis-point rate cut by the RBI, a move that would mark the first reduction in nearly five years. The expected cut is seen as a step toward aligning with the Union Budget’s objectives of stimulating growth while maintaining a prudent fiscal stance. With inflation and currency stability under control, the central bank may have the room to ease policy.
The Union Budget’s focus on boosting consumption to drive growth could further nudge the RBI to reconsider its current rate cycle.
Meanwhile, foreign institutional investors (FIIs) turned net sellers on February 5, offloading equities worth ₹1,682.83 crore. In contrast, domestic institutional investors (DIIs) stepped in, purchasing stocks worth ₹996.28 crore.
Sameet Chavan, Head of Research (Technical and Derivative) at Angel One, observed that traders were booking profits on long positions ahead of key domestic events, such as the MPC decision and the results of the Delhi state elections. He added that global uncertainties, including the ongoing trade war, continue to weigh on market sentiment.